The Japan Institute for Labour Policy and Training (JILPT) analyzes issues related to wage determinations for foreign worker employment permits by the German Federal Employment Agency (BA) and contradictions in the system.
Key Points
1. Complex Wage Standards for Work Permit Approval
- BA judges 'appropriate wages' based on regional collective agreements when approving foreign worker employment
- Even when actual wages exceed collective agreement levels, permits may be denied if deemed 'below usual levels'
- Vague standards create unpredictability for companies and inconsistent administrative decisions
2. Approval Refusal Despite Meeting Legal Requirements
- Hotel case: Cook position at €3,060/month denied despite exceeding collective agreement wage of €2,371
- BA determined wages were 20% below 'regionally usual wages' and refused approval
- Contradiction where meeting collective agreement standards doesn't guarantee permit approval
3. Court Recognition of System Contradictions
- Stuttgart Labor Court ruled BA decision illegal, criticizing opacity and arbitrariness of judgment standards
- Court pointed out fundamental contradiction of denying permits for wages exceeding collective agreements
- Questioned whether forcing higher wages truly protects foreign workers' interests
4. Unresolved Definition of 'Regionally Usual Wages'
- BA uses Federal Statistical Office data, but specific calculation methods remain unclear
- Regional disparities, industry characteristics, and company size differences not adequately considered
- Gap between statistical averages and actual market wages causing confusion
5. Impact on Labor Mobility and Shortage Response
- System preventing smooth foreign worker employment despite labor shortages
- Companies hesitant to hire due to unpredictable approval standards
- Contradiction of aiming for foreign worker protection while potentially reducing employment opportunities
The article concludes that establishing transparent and predictable standards for foreign worker wage determinations is urgently needed to address Germany's labor shortage issues.